Special Investigating Units and Special Tribunals Act, 1996
R 385
Long Term Insurance Act, 1998 (Act No. 52 of 1998)RegulationsRegulations under the Long-term Insurance Act, 1998Part 3 : RemunerationPart 3C : Limitation on Remuneration for Binder Functions3.20 General principles for determining remuneration for binder functions |
| (1) | When remuneration is provided by or on behalf of an insurer to any person for rendering a binder function— |
| (a) | such remuneration must be reasonable and commensurate with the actual cost of performing the binder function, taking into account the nature of the function and the resources, skills and competencies reasonably required to perform it; |
| (b) | the payment of such remuneration must not result in the person being remunerated more than once for performing a similar function on behalf of the insurer and/or policyholder; |
| (c) | any actual or potential conflicts between the interest of policyholders and the interests of the person receiving the remuneration must be effectively mitigated; and |
| (d) | the payment of such remuneration must not impede the delivery of fair outcomes to policyholders. |
[Regulation 3.20 inserted by regulation 4(bb) of Notice No. 1437 of 2017]
